Investment Securities

3 Months Ended

Jun. 30, 2020

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIES

The Bank utilizes mortgage-backed and other investment securities in its asset/liability management strategy. In making investment decisions, the Bank considers, among other things, its yield and interest rate objectives, its interest rate and credit risk position, and its liquidity and cash flow.

Generally, the investment policy of the Bank is to invest funds among categories of investments and maturities based upon the Bank’s asset/liability management policies, investment quality, loan and deposit volume and collateral requirements, liquidity needs and performance objectives. GAAP requires that securities be classified into three categories: trading, held-to-maturity, and available-for-sale. At June 30, 2020, $63.5 million, or 86.5%, of the Bank’s total securities were classified as available-for-sale, and $9.9 million, or 13.5%, were classified as held-to-maturity. The Bank had no securities classified as trading at June 30, 2020 and March 31, 2020.

Equity securities as of June 30, 2020 primarily consists of the Bank's investment in a limited partnership Community Capital Fund. These securities are measured at fair value with unrealized holding gains and losses reflected in net income. Other investments totaled $925 thousand at June 30, 2020 and are included in Other Assets on the Statements of Financial Condition.

The following tables set forth the amortized cost and fair value of securities available-for-sale and held-to-maturity at June 30, 2020 and March 31, 2020:


	At June 30, 2020
	Amortized		Gross Unrealized
$ in thousands	Cost		Gains		Losses		Fair Value
Available-for-Sale:
Mortgage-backed Securities:
Government National Mortgage Association	$	1,867	$	72	$	—	$	1,939
Federal Home Loan Mortgage Corporation	5,051		127		3		5,175

Total mortgage-backed securities	6,918		199		3		7,114
U.S. Government Agency Securities	22,699		15		190		22,524

Corporate Bonds	6,279		4		—		6,283
Muni Securities	17,779		—		169		17,610
Asset-backed Securities	9,979		2		—		9,981
Total available-for-sale	$	63,654	$	220	$	362	$	63,512

Held-to-Maturity:
Mortgage-backed Securities:
Government National Mortgage Association	$	903	$	78	$	—	$	981
Federal National Mortgage Association and Other	7,972		351		—		8,323
Total held-to-maturity mortgage-backed securities	8,875		429		—		9,304
Corporate Bonds	1,000		—		—		1,000
Total held-to maturity	$	9,875	$	429	$	—	$	10,304


	At March 31, 2020
	Amortized		Gross Unrealized
$ in thousands	Cost		Gains		Losses		Fair Value
Available-for-Sale:
Mortgage-backed Securities:
Government National Mortgage Association	$	3,510	$	77	$	—	$	3,587
Federal Home Loan Mortgage Corporation	9,244		312		18		9,538
Federal National Mortgage Association	21,495		673		—		22,168

Total mortgage-backed securities	34,249		1,062		18		35,293
U.S. Government Agency Securities	26,616		20		155		26,481
Corporate Bonds	4,032		33		10		4,055

Total available-for-sale	$	64,897	$	1,115	$	183	$	65,829

Held-to-Maturity:
Mortgage-backed Securities:
Government National Mortgage Association	$	972	$	76	$	—	$	1,048
Federal National Mortgage Association and Other	8,179		342		—		8,521
Total held-to-maturity mortgage-backed securities	9,151		418		—		9,569
Corporate Bonds	1,000		—		5		995
Total held-to-maturity	$	10,151	$	418	$	5	$	10,564

The following is a summary regarding proceeds, gross gains and gross losses realized from the sale of securities from the available-for-sale portfolio for the three months ended June 30, 2020. There were no sales of available-for-sale and held-to-maturity securities for the three months ended June 30, 2019.


$ in thousands	June 30, 2020
Proceeds	$	30,190
Gross gains	862
Gross losses	—

The following tables set forth the unrealized losses and fair value of securities in an unrealized loss position at June 30, 2020 and March 31, 2020 for less than 12 months and 12 months or longer:


	At June 30, 2020
	Less than 12 months						12 months or longer						Total
$ in thousands	Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value
Available-for-Sale:
Mortgage-backed securities	$	—	$	—	$	3	$	563	$	3	$	563
U.S. Government Agency securities	—		—		190		20,906		190		20,906



Muni securities	169		12,393		—		—		169		12,393
Total available-for-sale securities	$	169	$	12,393	$	193	$	21,469	$	362	$	33,862


	At March 31, 2020
	Less than 12 months						12 months or longer						Total
$ in thousands	Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value
Available-for-Sale:
Mortgage-backed securities	$	—	$	—	$	18	$	619	$	18	$	619
U.S. Government Agency securities					155		21,494		155		21,494
Corporate bonds	10		1,999		—		—		10		1,999

Total available-for-sale securities	$	10	$	1,999	$	173	$	22,113	$	183	$	24,112
Held-to-Maturity:

Corporate bonds	$	5	$	995	$	—	$	—	$	5	$	995
Total held-to-maturity securities	$	5	$	995	$	—	$	—	$	5	$	995

A total of 8 securities had an unrealized loss at June 30, 2020 compared to 7 at March 31, 2020. U.S. government agency securities and muni securities represented 61.7% and 36.6%, respectively, of total available-for-sale securities in an unrealized loss position at June 30, 2020. There was 1 mortgage-backed security and four U.S. government agency securities that had an unrealized loss position for more than 12 months at June 30, 2020. Given the high credit quality of the securities which are backed by the U.S. government's guarantees, and the corporate securities which are all reputable institutions in good financial standing, the risk of credit loss is minimal. Management believes that these unrealized losses are a direct result of the current rate environment and that the Company has the ability and intent to hold the securities until maturity or until the valuations recover. The Bank did not have any securities that were classified as having other-than-temporary impairment in its investment portfolio at June 30, 2020.

The following is a summary of the amortized cost and fair value of debt securities at June 30, 2020, by remaining period to contractual maturity (ignoring earlier call dates, if any). Actual maturities may differ from contractual maturities because certain security issuers have the right to call or prepay their obligations. The table below does not consider the effects of possible prepayments or unscheduled repayments.


$ in thousands	Amortized Cost		Fair Value		Weighted Average Yield
Available-for-Sale:
Less than one year	$	1,002	$	1,007	1.71	%
One through five years	4,114		4,130		3.00	%
Five through ten years	6,877		6,813		1.35	%
After ten years	44,743		44,448		1.83	%
Mortgage-backed securities	6,918		7,114		2.63	%
Total	$	63,654	$	63,512	1.94	%

Held-to-maturity:

Five through ten years	1,000		1,000		5.75	%

Mortgage-backed securities	8,875		9,304		2.49	%
Total	$	9,875	$	10,304	2.82	%